Global businesses have actively embraced the digital industry. The education sector also utilizes digital tools to enhance personalized learning and promote equity in education. New frontiers have been established in education through the use of artificial intelligence (AI)-based tools. As the role of AI in education is inevitable, the present research aims to identify the level of awareness in higher education regarding the application and acceptance of AI. This study explores how AI has enhanced their learning experience and impacted faculty engagement in higher education. Using a quantitative research approach and a structural equation model, the factors influencing the acceptance of AI in this field were examined. The findings indicated that the implementation of AI has led to the evolution of robust assessment methods, resulting in increased faculty engagement. This study identified that attitudes, applications, and behavioral intentions play a significant role in influencing work engagement and the acceptance of AI in the higher education system.